Early warning indicator for financial crashes using the log periodic power law

In this article, we apply the Log Periodic Power Law (LPPL), introduced by Johansen <italic>et al.</italic> (2000), for capturing the recent stock market crash in the German stock index (Deutscher Aktien Index, DAX). The contribution of this article consists not only in describing the historical crash by the LPPL, but also in demonstrating how the LPPL can be used as an early warning indicator for financial crashes.

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Year of publication:	2012
Authors:	Kurz-Kim, Jeong-Ryeol
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 19.2012, 15, p. 1465-1469
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010976528